The European Commission has approved the $36 billion (€30,9 billion) deal through which Mars will acquire Pringles maker Kellanova, after launching an in-depth investigation in June to assess its impact on competition in the European Economic Area. Brussels has ruled that the transaction “does not raise competition concerns in the EEA”, confirming one of the most important consolidations of recent years in the sweets, snacks and cereal markets.
With the addition of Kellanova, Mars further expands its already extensive portfolio, which includes M&M's, Snickers, Whiskas, and many other brands, now joined by Pringles, Pop-Tarts, and Kellogg's cereals. The acquisition thus strengthens the group's presence in key European markets, potentially impacting trade negotiations between industry and distribution.
The investigation confirmed that Mars and Kellanova already possess a certain degree of market power in several categories and in several Member States. The Commission specifically examined the risk that the new entity might link multiple product categories in negotiations with retailers, strengthening its ability to exert commercial influence. However, Brussels believes that the addition of Kellanova products will not significantly alter Mars's negotiating power, as these categories have a long shelf life, are often purchased impulsively and infrequently, and are therefore less likely to generate cross-distribution leverage. Furthermore, the Commission believes that consumers do not demonstrate brand loyalty sufficient to push them to switch supermarkets if the Mars and Kellanova brands were simultaneously absent. This further reduces any potential risk of competitive distortion.
The transaction had already received approval from the U.S. Federal Trade Commission in June, confirming the robustness of the global regulatory process. At the same time, Mars announced a €1 billion investment plan in its European operations by 2026, with the aim of strengthening production capacity, sustainability, innovation, and economic resilience. This commitment, according to the group, is consistent with the growth strategy that the acquisition of Kellanova will help accelerate in the coming years.
